DYNAMICAL MODELS OF DEPOSITS AND LOANS VOLUMES USING INTERBANK LENDING-AND-SAVING FACTOR FOR COMMERCIAL BANKS

• Main Author: Rahmi Widyani, Hanifah
• Format: Final Project
• Language: Indonesia
• Subjects: Matematika
• Online Access: https://digilib.itb.ac.id/gdl/view/34018
• Institution: Institut Teknologi Bandung

Banks are the nancial intermediaries that the average person interacts with most frequently. Banks accept deposits from individuals and institutions to make loans. The loans made by a bank should be proportional to its deposits. Small number of loans would result in minimal prot. However, giving out too much loans would give negative eects to the bank's liquidity. Banks also get and make loans to other banks in interbank market. In this nal project, dynamical models of bank deposits and loans volumes will be constructed considering the interbank lending-and-saving factor. The growth of deposits and loans volumes are assumed to follow logistic mo- del. Fluctuations within the dynamics could happen because of some shocks. Banks' prots are calculated based on Monti-Klein model. The dynamics of the deposits and loans, as well as the eect of the shocks to banks' prot, will be analyzed for each group of banks based on its core capital. The results show that the capability of banks to handle shocks are dierent based on the group. Shocks in loans dynamic have greater impacts to banks' prot compared to the shocks in deposits dynamic.